SUPPLEMENTAL FINANCIAL INFORMATION

12 Months Ended

Jun. 30, 2019

Supplemental Balance Sheet Disclosures [Text Block]

SUPPLEMENTAL FINANCIAL INFORMATION

The components of property, plant and equipment were as follows:



As of June 30	2019			2018
PROPERTY, PLANT AND EQUIPMENT
Buildings	$	7,746		$	7,188
Machinery and equipment	32,263			30,595
Land	805			841
Construction in progress	2,579			3,223
TOTAL PROPERTY, PLANT AND EQUIPMENT	43,393			41,847
Accumulated depreciation	(22,122		)	(21,247		)
PROPERTY, PLANT AND EQUIPMENT, NET	$	21,271		$	20,600

Selected components of current and noncurrent liabilities were as follows:



As of June 30	2019		2018
ACCRUED AND OTHER LIABILITIES - CURRENT
Marketing and promotion	$	4,299	$	3,208
Compensation expenses	1,623		1,298
Restructuring reserves	468		513
Taxes payable	341		268
Other	2,323		2,183
TOTAL	$	9,054	$	7,470

OTHER NONCURRENT LIABILITIES
Pension benefits	$	5,622	$	4,768
Other postretirement benefits	1,098		1,495
Uncertain tax positions	472		581
U.S. Tax Act transitional tax payable	2,343		2,654
Other	676		666
TOTAL	$	10,211	$	10,164

RESTRUCTURING PROGRAM

The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before-tax costs incurred under the ongoing program have generally ranged from $250 to $500 annually. In fiscal 2012, the Company initiated an incremental restructuring program (covering fiscal 2012 through 2017) as part of a productivity and cost savings plan to reduce costs in the areas of supply chain, research and development, marketing activities and overhead expenses. The productivity and cost savings plan was designed to accelerate cost reductions by streamlining management decision making, manufacturing and other work processes in order to help fund the Company's growth strategy.

In fiscal 2017 the Company announced specific elements of another incremental multi-year productivity and cost savings plan to further reduce costs in the areas of supply chain, certain marketing activities and overhead expenses. This program is expected to result in incremental enrollment reductions, along with further optimization of the supply chain and other manufacturing processes.

Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs. The Company incurred total restructuring charges of $754 and $1,070 for the years ended June 30, 2019 and 2018, respectively. Of the charges incurred for fiscal year 2019, $213 were recorded in SG&A, $521 in Costs of products sold, and $20 in Other non-operating income/(expense), net. Of the charges incurred for fiscal year 2018, $237 were recorded in SG&A, $819 in Costs of products sold, and $14 in Other non-operating income/(expense), net. The following table presents restructuring activity for the years ended June 30, 2019 and 2018:



Amounts in millions	Separations			Asset-Related Costs			Other			Total
RESERVE JUNE 30, 2017	$	228		$	—		$	49		$	277
Charges	310			366			394			1,070
Cash spent	(279		)	—			(189		)	(468		)
Charges against assets	—			(366		)	—			(366		)
RESERVE JUNE 30, 2018	259			—			254			513
Charges	260			252			242			754
Cash spent	(239		)	—			(308		)	(547		)
Charges against assets	—			(252		)	—			(252		)
RESERVE JUNE 30, 2019	$	280		$	—		$	188		$	468

Separation Costs

Employee separation charges for the years ended June 30, 2019 and 2018 relate to severance packages for approximately 1,810 and 2,720 employees, respectively. The packages were primarily voluntary and the amounts were calculated based on salary levels and past service periods. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer.

Asset-Related Costs

Asset-related costs consist of both asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or disposal. These assets were written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. These assets relate primarily to manufacturing consolidations and technology standardizations. The asset-related charges will not have a significant impact on future depreciation charges.

Other Costs

Other restructuring-type charges are incurred as a direct result of the restructuring program. Such charges primarily include asset removal and termination of contracts related to supply chain optimization.

Consistent with our historical policies for ongoing restructuring-type activities, the restructuring program charges are funded by and included within Corporate for both management and segment reporting. Accordingly, all of the charges under the program are included within the Corporate reportable segment.

However, for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments:



Years ended June 30	2019		2018		2017
Beauty	$	49	$	60	$	90
Grooming	65		38		45
Health Care	23		21		15
Fabric & Home Care	84		115		144
Baby, Feminine & Family Care	226		547		231
Corporate ⁽¹⁾	307		289		229
Total Company	$	754	$	1,070	$	754

⁽¹⁾

Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities, along with costs related to discontinued operations from our Beauty Brands business in 2017.